The sanctioning of Russian diamonds by the Group of Seven (G7) would have a negligible effect on diamond trading in London but will significantly undermine the market in the Belgian city of Antwerp, Tom Neys, the spokesman for the Antwerp World Diamond Centre (AWDC), told Sputnik
MOSCOW (Pakistan Point News / Sputnik - 19th May, 2023) The sanctioning of Russian diamonds by the Group of Seven (G7) would have a negligible effect on diamond trading in London but will significantly undermine the market in the Belgian city of Antwerp, Tom Neys, the spokesman for the Antwerp World Diamond Centre (AWDC), told Sputnik.
Earlier on Friday, UK Prime Minister Rishi Sunak announced an embargo on imports of diamonds from Russia. The sanctions also include a $4 billion freeze on the diamond export market. European Council President Charles Michel stated before the G7 summit in Hiroshima, where the issue is also on the agenda, that the European Union was planning to do the same
"The trade share in Russian rough diamonds in London represents only 1% or 2% of the total turnover, so the giant De Beers can afford sanctions as decided by the Western powers without being much hit. There is practically no impact for London, which mainly deals with African rough stones from Botswana, Namibia, Tanzania and South Africa," Ney said.
The AWDC spokesperson is unsure whether possible G7 sanctions could hurt India's diamond industry, responsible for cutting and polishing most of the world's diamonds. He noted that most small stones that are cut and polished in India are still sold on the US market despite earlier sanctions by the United States and that seven out of ten small diamonds sold there are Russian stones. This could be stopped now if effective tracing can be put in place.
"As for Europe, the problem is specific: Antwerp - Belgium is the only place affected by the diamond trade in the EU. The trade in Russian large and valuable stones represents 25% of the business and $1.8 billion for Antwerp. It is easy for European member states to say yes to sanctions on Russian stones and solemnly declare a stop in the trade in Russian rough stones. They are not affected at all," Neys explained.
He noted the growing role of China, India and the United Arab Emirates in the diamond trade, adding that "either an efficient tracing system is put in place at global level, including London, India, China, and the United Arab Emirates and sanctions are taken by the whole world, or they cannot be envisaged."
The G7 Summit is being held in Hiroshima from May 19-21 and will focus on the Ukraine conflict, economic security, green investments, and developments in the Indo-Pacific region.
The leaders of India, Australia, Brazil, South Korea, Vietnam, Indonesia, Comoros, and the Cook Islands have been invited to participate in the G7 Summit as well as the heads of seven international organizations, including the United Nations, the World Bank, and the World Health Organization.
